State of the Union: Fox’s FanDuel play, bettors want cash from athletes, questionable political donation
Fox aiming to secure stake in FanDuel
The Fox Corporation this week confirmed plans to attempt to buy into FanDuel at a deeply discounted rate. How discounted? About $2.2bn below market value in the current conditions.
When Flutter Entertainment bought The Stars Group in 2020, it created a situation that would allow Fox Corp to buy up to an 18.6% stake in FanDuel. Earlier this week, at the Goldman Sachs Communacopia and Technology Conference, Fox CEO Lachlan Murdoch confirmed that his company is now moving forward with that option, reports Sportico.
According to Murdoch, analysts value FanDuel at $35bn. At that valuation, the 18.6% stake would be worth $6.5bn on the open market. Fox could buy it for about $4.3bn under the terms of the agreement. Fox, which previously had wagering platforms in several states, must again become a licensed betting operator in order to complete the transaction.
Bettors chase athletes for cash
As sports betting has swept the US, athletes have been more and more vocal in saying that wagering has resulted in harassment. This week, Auburn quarterback Payton Thomas said he got multiple Venmo requests from bettors for cash after last weekend’s loss to California. He made the comments on ‘The Next Round’, according to ESPN.
According to the story, he’s not the only one. Max Homa, a PGA golfer, said he also gets Venmo requests from bettors multiple times a week.
In August, tennis player Caroline Garcia posted on X that she often gets hateful messages and that maybe sports leagues should reconsider promoting betting.
CA political donation raises eyebrows
Last week, the California legislature approved a bill that will allow tribes to sue the state’s card rooms for what they believe is a violation of their exclusive right to Class III gambling. The bill passed easily, but one surprising “yes” vote, both in committee and on the assembly floor, was from Evan Low, reports CalMatters. The Democrat represents the city of San Jose, which gets millions in tax dollars from local card rooms.
The political outlet shared that the Viejas Band of Kumeyaay Indians, a key supporter of the bill, bought $60,000 worth of ads supporting Low’s senate campaign. Tribal leaders say they have a “longstanding” relationship with Low. The card rooms are fighting back with negative advertising on billboards near the San Jose airport.
NJ Republicans will support smoking ban
Republican officials from the New Jersey general assembly have come out in support of efforts to ban smoking in the state’s casinos and have pledged to help pass the issue if the Democratic majority does not.
“If Democrats are serious about protecting workers, Republicans are ready to help pass the bill,” said Assemblyman John DiMaio, according to InsiderNJ. “We need legislative action, not excuses.”
The issue has gained tremendous steam in recent years but the legislative progress has been slow. Last year, several contentious hearings on a bill that would close the smoking loophole did not lead to a vote. Local unions and trade bodies filed an unsuccessful suit earlier this year. Last week, the dealers’ union said it was pulling out of New Jersey because other unions don’t support the ban.
SBA rolls out Missouri Amendment 2 ad
Now that the courts have ruled that a Missouri initiative that would allow for statewide mobile sports betting can be on the November ballot, proponents have started their ad campaign. The Sports Betting Alliance (SBA) – comprised of BetMGM, DraftKings, Fanatics Sportsbook and FanDuel – is leveraging the idea that tax dollars will support schools.
Also in Missouri, on 6 September, the gaming commission announced that Mike Leara has been named executive director. He’ll replace Peggy Richardson. The agency did not announce a start date for Leara.
These fans aren’t happy about gambling ads
On 9 September the Edmonton Oilers debuted new shirts for the 2024-25 season with a PlayAlberta logo on the front. Fans reacted almost immediately, and not in a good way according to the Edmonton Journal.
Among the social media replies:
“This is cringe.”
“Shameful. Gambling is an epidemic and you’re now fully advertising it to kids.”
“Money talks as usual. Shameful.”
So far, the team has not responded, but in its original release spent significant time sharing that funds from PlayAlberta “support programmes and services that Albertans rely on every day”.
Stand by your man
Earlier this week, Wynn Las Vegas was fined $130m for using unlicensed money transmitting businesses. The fine was issued by the federal government to the corporation. But so far no individuals have been called out for making the decisions or using the unlicensed companies.
Kim Sibella, wife of former MGM and Resorts World executive Scott Sibella, had plenty to say. Her husband took a plea deal earlier this year, after admitting that he failed to file a suspicious activity report while exchanging money for known illegal bookie Wayne Nix.
More Maine drama
Shortly after it became public that all of Maine’s Gambling Control Unit inspectors had signed a letter of no confidence for chief Milton Champion, half of the MGCU staff signed a letter supporting him, reports the Portland Press Herald.
“As a group, we feel a need to express our unwavering support and appreciation for our executive director,” read the letter. “His open-door policy and approachable demeanour have made us feel both welcomed and valued. Under his guidance, we have been encouraged to take on new challenges, develop our skills and grow professionally.”
The letter was signed by nine of the MGCU’s 19 employees, including deputy director Matthew Motti.
GLPI completes Chicago land acquistion
Gaming and Leisure Properties (GLPI) announced on 11 September that it had completed the acquisition of the land on which the permanent Bally’s Chicago casino will be built. GLPI purchased the land from Blue Owl Capital for $250m.
The site is the former home of the Chicago Tribune, which is being demolished. Demolition is expected to take three to four months. The casino is scheduled to open in September 2026.
Snowden loads up on Penn stock
Penn Entertainment CEO Jay Snowden purchased $1m worth of company stock in early September, according to CDC Gaming Reports. Snowden bought 54,200 shares for various prices, ranging from $18.15-$18.76. The timing dovetailed with the start of the NFL season. It is ahead of a projected September launch of ESPN Bet in New York State.
Circa’s record-breaking prize pools
Circa announced that its season-long NFL Survivor and Million VI contests set a new record with $20.3m in prize money. That is a massive jump from last year, when the total pools were $15.2m. There are 14,266 entries in this year’s Survivor contest, for a prize pool of $14.3m. The Circa VI has 5,817 entrants and the sportsbook will pay a $183,000 overlay to bring the prize to $6m.
HardRock Bet partners with Jaguars
Florida’s only digital sports betting platform announced on Monday (9 September) that it is partnering with the NFL’s Jacksonville Jaguars.
NorthStar Bets upgrades
Ahead of the NHL season and in preparation for an anticipated legal wagering launch in Alberta, NorthStar Bets has streamlined navigation and is now using AI to craft customer-specific parlays. The platform is also live in Ontario and has also made improvements on the igaming side, adding a new blackjack table design that targets VIP players. It has also improved online casino navigation.
In other news…
NFL legend Terry Bradshaw is apparently looking to get back into the horse world. Bloodhorse reported that he was spotted at the 10 September Keeneland September Yearling Sale.
Ten more athletes involved in the Iowa sports betting scandal joined a civil lawsuit against the state, the Associated Press reported on 10 September. An Iowa basketball equipment manager was also allowed to join, bringing the total number of plaintiffs to 37.
ESPN announced on 10 September that it had agreed to a contract extension with sports betting analyst Liz Loza. Details of the deal were not released.
The Michigan Gaming Control Board’s ‘Don’t Regret the Bet’ ad campaign won a Michigan Chapter Emmy Award from the National Academy of Television Arts & Sciences, the agency announced earlier this week.
ICYMI on iGB
Tonko, Blumenthal unveil federal sports betting legislation
FanDuel got a massive bump in revenue from the Olympics
Inside the Mass Gaming Commission’s bet limits discussion
Nevada regulators give Sammy Sega initial approval for GAN purchase
Sporttrade starting to have its day in the sun
Wynn Las Vegas’ $130m penance for using unlicensed money transfer companies